E-commerce Software Q2 Earnings: Shopify (NASDAQ:SHOP) Simply the Best

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Shopify (NASDAQ:SHOP) and the best and worst performers in the e-commerce software industry.

While e-commerce has been around for over two decades and enjoyed meaningful growth, its overall penetration of retail still remains low. Only around $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for online disruption. It is these large swathes of the retail where e-commerce has not yet taken hold that drives the demand for various e-commerce software solutions.

The 5 e-commerce software stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q2: Shopify (NASDAQ:SHOP)

Originally created as an internal tool for a snowboarding company, Shopify (NYSE:SHOP) provides a software platform for building and operating e-commerce businesses.

Shopify reported revenues of $2.68 billion, up 31.1% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ gross merchandise volume estimates and an impressive beat of analysts’ EBITDA estimates.

Shopify achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 18.5% since reporting and currently trades at $150.59.

We think Shopify is a good business, but is it a buy today? Read our full report here, it’s free.

BigCommerce (NASDAQ:BIGC)

Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores.

BigCommerce reported revenues of $84.43 million, up 3.2% year on year, outperforming analysts’ expectations by 1.3%. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.

The market seems content with the results as the stock is up 4.6% since reporting. It currently trades at $4.99.

Is now the time to buy BigCommerce? Access our full analysis of the earnings results here, it’s free.

Slowest Q2: VeriSign (NASDAQ:VRSN)

While the company is not a domain registrar and does not directly sell domain names to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net.

VeriSign reported revenues of $409.9 million, up 5.9% year on year, in line with analysts’ expectations. It was a slower quarter, leaving some shareholders looking for more.

VeriSign delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.8% since the results and currently trades at $273.17.

Read our full analysis of VeriSign’s results here.

GoDaddy (NYSE:GDDY)

Founded by Bob Parsons after selling his first company to Intuit, GoDaddy (NYSE:GDDY) provides small and mid-sized businesses with the ability to buy a web domain and tools to create and manage a website.

GoDaddy reported revenues of $1.22 billion, up 8.3% year on year. This number topped analysts’ expectations by 0.9%. Aside from that, it was a satisfactory quarter as it also produced a decent beat of analysts’ EBITDA estimates but bookings in line with analysts’ estimates.

GoDaddy had the weakest full-year guidance update among its peers. The company lost 75,000 customers and ended up with a total of 20.41 million. The stock is down 11.3% since reporting and currently trades at $133.35.

Read our full, actionable report on GoDaddy here, it’s free.

Wix (NASDAQ:WIX)

Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy to operate website building platform.

Wix reported revenues of $489.9 million, up 12.4% year on year. This print surpassed analysts’ expectations by 0.6%. Taking a step back, it was a mixed quarter as it also logged billings in line with analysts’ estimates but a slight miss of analysts’ EBITDA estimates.

Wix scored the highest full-year guidance raise among its peers. The stock is down 3% since reporting and currently trades at $123.99.

Read our full, actionable report on Wix here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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